Informist, Tuesday, Mar 22, 2022
By Chinmay Mungse
MUMBAI – GOLD and SILVER contracts on the Multi Commodity Exchange of India and COMEX remained largely unchanged today due to mixed cues from the global market, said analysts.
* The yield on the 10-year US Treasury note rose to 2.34%, the highest since May 2019, after Federal Reserve chair Jerome Powell’s aggressive stance on inflation.
* In a speech on Monday, Powell said the Fed must move expeditiously to raise rates, possibly more aggressively to keep the upward price spiral from getting entrenched. “A hike of 50 basis points in May is already largely priced into the Fed Fund Futures,” said Commerzbank AG.
* The surge in bond yields limited gains for gold, which escalated as peace talks between Ukraine and Russia yielded no concrete results.
* Analysts say the markets are also factoring in Ukrainian President Volodymyr Zelenskyy’s statement that Ukraine was prepared to discuss a commitment to not seek membership in the North Atlantic Treaty Organization in exchange for a ceasefire, the withdrawal of Russian troops, and a guarantee of Ukraine’s security.
* “Gold and silver corrected today due to Zelenskyy’s statement. The market is expected to be volatile ahead of next round of meeting between Russia and Ukraine,” said Manoj Jain, research head at Prithvi Finmart.
* In the domestic market, the rupee’s weakness against the US dollar capped losses in gold contracts. A weaker rupee makes the greenback-priced commodity expensive for Indian investors.
* At 1646 IST, the most-active contracts of bullion were:
–April gold was flat at 51,613 rupees per 10 gm on MCX
–April gold was flat at $1,928.6 an ounce on COMEX
–May silver was down 0.1% at 68,276 rupees per kg on MCX
–-May silver was up 0.1% at $25.29 an ounce on COMEX
* Outlook for the evening session:
–MCX gold seen at 51,440-51,880 rupees
–COMEX gold seen at $1,914-$1,944
–MCX silver seen at 67,900-68,950 rupees
–COMEX silver seen at $24.84-$25.90
End
US$1 = 76.17 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Avishek Dutta
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